Under the 2023/2024 State budget plan, Israeli authorities have announced that they are moving towards a Continuous Transaction Controls (CTC). A new announcement stating implementation plan of the CTC model has been published. According to the announcement; in B2B transactions, invoices above NIS 25,000 (around Euro 6,250) must be submitted to the tax authority in real-time and obtain approval. With the implementation of the CTC model, for invoices in the prescribed amounts, obtaining an allocation number from the tax authority will be mandatory. Additionally, without allocation approval, a tax invoice will not be able to deduct the input tax.
The launch of CTC model implementation is scheduled as January 2024.The threshold will be reduced to NIS 5,000 (around Euro 1,300) by 2028.
